Problem
FAR Bhd was incorporated on 2.1.2019 with a capital of RM2,000,000 divided into 2,000,000 ordinary shares of RM1 each. On 10.1.2019, the directors decided to make an issue of 100,000 Ordinary Share Capital of RM2.5 per share payable in full upon application. Applications for 200,000 shares were received. The money received on the over-subscribed shares was refunded.
Show the necessary journal entries and upon completion of the above transactions.